I have a video that VLC plays wrong. The blue and red are switched. It looks weird but not bad. Is there a way for me to correct this? WindowsMediaPlayer gets the colors right. The video type is CRAM (ugh)

See if the colors are inverted again. If so, it does not come from your configuration.

If it is a VLC/hardware issue:

Update VLC to the latest version (1.1.2).

If you already have the latest version of if the update did not solved the problem, you can report the problem to VLC bugtracking application, indicating the problem and the OS and the hardware you have (sound card and/or motherboard).